Lincoln Lodging Inc

Multiple Choice

Lincoln Lodging Inc.estimates that if its sales increase 10% then its net income will increase 15.00%.The company's EBIT equals $2.4 million,and its interest expense is $400,000.The company's operating costs include fixed and variable costs.What is the level of the company's fixed operating costs?

A) $720,000
B) $558,000
C) $624,000
D) $600,000
E) $534,000